SEBI's New ISIN Guidelines Propel Market Transformation

SEBI has announced a relaxation for issuers to list their unlisted ISINs by December 31, 2023, encouraging a transition into the listed market. SEBI aims to increase transparency and market activity by exempting these ISINs from the annual maturity cap, encouraging issuers to list their securities.

In a bold move to enhance market transparency and participation, SEBI introduced new guidelines on Friday allowing issuers to list their previously unlisted ISINs. By focusing on securities outstanding as of December 31, 2023, the regulation aims to facilitate their transition into the public listed space.

Under this framework, converted listed ISINs will not count towards the maximum ISIN limit that can mature in a single financial year. This change is designed to motivate issuers to bring unlisted securities to the open market, thereby improving transparency and market involvement.

Regulation 62A of SEBI's LODR stresses that all non-convertible debt securities proposed post-January 1, 2024, should be listed, offering organizations the chance to convert previously unlisted ISINs. The initiative supports greater market participation and aligns with existing regulation parameters.

(With inputs from agencies.)